Posts tagged Netflix
So it’s nice to see that another company either learned from that, or just knew all along how to do it better. A colleague forwarded the following e-mail that he got regarding price changes at Redbox. Take a look at how they explain why this is necessary.
New Daily DVD Rental Price
Redbox is making an announcement about its prices today, and we want to make sure that you hear it from us first.
Starting on Monday, October 31, the daily rental charge for DVDs will change to $1.20 a day.* The price change is due to rising operating expenses, including new increases in debit card fees. Daily rental charges for Blu-ray™ Discs and video games won’t change.** Additional-day charges for DVDs rented before 10/31 won’t be affected, either.
In order to make the transition easier, Redbox will discount the first day of all online DVD rentals to $1.00 from 10/31 through 11/30. Additional rental days will be $1.20.***
If you have any questions, please visit redbox.com/pricechange. There, we’ve provided additional information.
This marks our first price change in more than eight years as we work hard to keep prices low for our customers.
See, Reed Hastings? That isn’t so hard, is it?
Saturday Night Live now seems oddly prescient, if you ignore the details:
It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs.
This means no change: one website, one account, one password…in other words, no Qwikster.
While the July price change was necessary, we are now done with price changes.
We’re constantly improving our streaming selection. We’ve recently added hundreds of movies from Paramount, Sony, Universal, Fox, Warner Bros., Lionsgate, MGM and Miramax. Plus, in the last couple of weeks alone, we’ve added over 3,500 TV episodes from ABC, NBC, FOX, CBS, USA, E!, Nickelodeon, Disney Channel, ABC Family, Discovery Channel, TLC, SyFy, A&E, History, and PBS.
We value you as a member, and we are committed to making Netflix the best place to get your movies & TV shows.
The Netflix Team
In July, Netflix changed their service dramatically. Lots of people were unhappy, both with the change, and with how it was communicated.
Three months later, Netflix co-founder and CEO Reed Hastings posted an apology on the company’s blog. He also sent a condensed version of that apology to every Netflix customer (well, I got one–I assume everyone else did, too). In it, he says:
But now I see that given the huge changes we have been recently making, I should have personally given a full justification to our members of why we are separating DVD and streaming, and charging for both. It wouldn’t have changed the price increase, but it would have been the right thing to do.
So here is what we are doing and why:
Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD, plus lots of TV series. We want to advertise the breadth of our incredible DVD offering so that as many people as possible know it still exists, and it is a great option for those who want the huge and comprehensive selection on DVD. DVD by mail may not last forever, but we want it to last as long as possible.
I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We feel we need to focus on rapid improvement as streaming technology and the market evolve, without having to maintain compatibility with our DVD by mail service.
So we realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently.
Nowhere in this passage, or elsewhere in the apology, does he mention something crucial: the way they’ve been handling streaming has been wrong, and the reorganization is designed to let them keep that part of the business going. Bill Gurley does a great job of explaining how the laws regarding distribution rights for DVDs and streaming video are different.
And I think it’s worth noting that it took three months for them to figure this out. Three months and the loss of what I hear is a million customers–not to mention dwindling stock prices. All that, and an apology that doesn’t really explain the cause of the change (or indicate that they now realize that their method provided very little notice to existing customers).
The response I’ve seen has been overwhelmingly negative, which is not what you usually hope for with an apology.
Photo by ozcast, via Flickr.
I am one of the Netflix customers who opened an e-mail titled “Important Netflix Account Info: Price Change and New Plans” to find that Netflix will soon be charging me more.
I’ve been a Netflix customer for many years, and have always been happy with the service. And I’ve had a number of subscription plans during that time, based on my viewing patterns.
Here’s the thing I noticed: Yes, Netflix is about to charge me $19.99 a month instead of $14.99 a month. And, yes, that’s a third again as much for the same service. Also, yes, it is only $5 a month–hardly likely to break the bank. But–and this is to me a bigger deal than the cost–previously, I have been able to continue whatever plan I was on until I chose to make a change. That plan was grandfathered in, and while new customers might not be able to select it, I could continue with it because I was already subscribed.
That’s not the case here. Netflix has made this change across the board, regardless of whether you are a new or an existing customer. And they’ve done it with fairly short notice; the new pricing will take effect starting September 1, and this is the middle of July. Considering that it’s summer, and people are at various stages of vacations (assuming they’re not moving), that doesn’t feel like a lot of time to me.
It feels like even less time when I click through the e-mail to change my subscription and find that the new plan will actually take effect next week. And the confusion continues when I see that one page tells me to return my current DVDs within seven days, and another tells me within 14 days. Come on, Netflix–make up your mind. What are these time frames, and why can’t you communicate them consistently within the same information stream?
Nevertheless, I’ve changed my subscription. We’ve had two DVDs for months, because we haven’t had the opportunity to watch them. So, clearly, we don’t need X number of DVDs per month. Streaming video is the way to go for this. If we really want a DVD, we can rent from Redbox.
So here’s the real question: Is it worth paying for Netflix at all when I already have a membership in Amazon Prime?